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MUMBAI: Mutual fund houses and brokerages Friday morning made frantic calls to their investors who are due to receive redemptions or payouts into linked Yes Bank accounts.

The Reserve Bank of India (RBI) action late Thursday on the stressed lender came as a shock to many of its customers using Yes Bank accounts for trading in equities or investments in mutual funds. Several stock brokers restricted investors from trading through Yes Bank accounts.

Several businessmen and large corporates park large amounts in overnight, liquid funds for a short duration of time. These redemption proceeds are paid out to investors the next day by 10 am.

Equity mutual funds pay redemption amounts in four working days.

“If clients want to change their redemption bank account mandate from Yes Bank to any other bank, they can send a request to Mutual@kotak.com. We shall process the request for tomorrow's redemptions so that their money isn't blocked,” said Nilesh Shah, MD, Kotak Mutual Fund in a tweet.

“We have reached out to investors with redemption mandate at Yes Bank accounts, telling them that they can choose to change their bank mandate to any alternative one by reaching out to any of our branches,” said a spokesperson at ICICI Prudential Mutual Fund.

Almost all brokerage told their clients to change their primary bank account from Yes Bank to other banks.

“In light of the RBI restricting withdrawal amounts from Yes Bank, we request all our customers to not transfer their regular trading and investments-related deposits into the Sharekhan Yes Bank account through payment gateways or NEFT/RTGS modes,” said Sharekhan to its customers.

Leading discount brokerage Zerodha has also cancelled all fund withdrawal requests made by clients to Yes Bank accounts.

“Please change, if your primary bank account is YES, to any other and withdraw the funds” the brokerage told its customers.